Acadia Healthcare Q1 Earnings Top Estimates on Rising Admissions

Core Viewpoint - Acadia Healthcare Company, Inc. (ACHC) reported mixed financial results for the first quarter, with adjusted earnings per share beating estimates but showing a significant year-over-year decline, while total revenues showed slight growth [1][2]. Financial Performance - Adjusted first-quarter earnings were 40 cents per share, exceeding the Zacks Consensus Estimate by 14.3%, but down 52.4% year over year [1]. - Total revenues increased by 0.3% year over year to $770.5 million, aligning with consensus expectations [1]. - Same-facility revenues rose 2.1% year over year to $759.7 million, although this fell short of the estimated $763.1 million [3]. - Total adjusted EBITDA decreased by 22.8% year over year to $134.2 million, slightly below the estimate of $134.9 million [4]. Operational Metrics - Patient days improved by 2.2% year over year, contributing to increased admissions, which grew by 2.1% [3]. - Revenue per patient day declined by 0.2% year over year, missing the growth estimate of 2% [3][4]. - Total expenses rose by 13.1% year over year to $757 million, exceeding the estimate of $744.6 million, driven by higher salaries, wages, benefits, and operating costs [5]. Cash and Debt Position - As of March 31, 2025, cash and cash equivalents increased to $91.2 million from $76.3 million at the end of 2024 [5]. - Total assets grew to $6.1 billion, while long-term debt rose to $2.2 billion from $1.9 billion at the end of 2024 [6]. - Total equity decreased by 1% to $3 billion, with a net leverage ratio of approximately 3.2 [6]. Share Repurchase and Guidance - Management authorized a share repurchase program for up to $300 million, with $47.3 million worth of shares repurchased in the first quarter [7]. - The company reaffirmed its 2025 guidance, projecting revenues between $3.3 billion and $3.4 billion, adjusted EBITDA between $675 million and $725 million, and adjusted EPS between $2.50 and $2.80 [8]. Future Projections - Interest expenses are expected to remain between $130 million and $140 million, with depreciation and amortization expenses projected at $175 million to $185 million [9]. - Operating cash flows are forecasted to be in the range of $460 million to $510 million, with expansion capital expenditures anticipated between $525 million and $575 million [9]. - Management estimates bed additions between 800 and 1,000 in 2025 [10].